San Antonio, TX, October 19, 2025
News Summary
Rental affordability in the U.S. is at its best level in four years, helping prospective renters facing subdued rent growth and increased concessions from landlords. As multifamily housing increases and rental pressures ease in many areas, particularly in the South, tenants are experiencing more favorable market conditions. Regions like Austin, Denver, and San Antonio are particularly benefiting from these trends, with overall rental costs showing signs of decline while different areas continue to see increases in demand.
Rental Affordability Reaches Four-Year High
Rental affordability in the United States has reached its best level in four years, resulting in a slight break for prospective renters seeking new leases. This increase in affordability comes as rent growth has subdued and landlords are now offering record-breaking concessions. Following a significant number of new multifamily apartments becoming available in 2024, the rental market is beginning to show more favorable conditions for tenants.
As builders completed the highest number of multifamily units in a single year since the last half-century in response to pandemic-driven housing demand, many regions are experiencing eased rental pressures. The South, with its fewer zoning restrictions, has seen builders respond quickly to the needs of renters, creating pockets of affordability that are rare in other regions.
In September, national annual rent growth in multifamily units was recorded at 1.7%, marking the second-lowest growth since 2021. This slowdown in rent growth has been partially attributed to a weaker labor market, which affects new job availability necessary for residential mobility. Falling apartment rents are particularly noted in the Sun Belt and Mountain West regions, where significant year-over-year rent declines have taken place in cities such as Austin (-4.7%), Denver (-3.4%), San Antonio (-2.3%), Phoenix (-2.2%), and Orlando (-0.8%).
Regional Rental Trends
Conversely, areas characterized by stricter building regulations or high demand have continued to experience higher rent growth. Notably, cities such as Chicago (6%), San Francisco (5.6%), New York (5.3%), Providence, Rhode Island (4.8%), and Cleveland (4.2%) have shown significant increases in rental costs.
While multifamily units are seeing a decline in rent growth, single-family rents have risen by 3.2% year-over-year in September, representing the lowest annual growth since records began in 2016.
Concessions Become Common
In an effort to attract renters, rental managers are increasingly offering concessions such as free months of rent or complimentary parking, rather than lowering rents outright. A record 37.3% of rentals listed on major platforms now provide some type of concession, which has significantly increased from 14.4% in 2019. This trend is expected to continue, generally peaking during winter or early spring.
As property managers become more accustomed to offering these concessions, there may be a need to consider lowering rental prices, especially as competition among renters tends to decrease during winter months.
Improved Rental Affordability
The improved rental affordability is notable, with a typical rental now requiring 28.4% of the median household income nationally, reduced from 28.8% a year prior. This figure is now below the 30% threshold that typically indicates a financial burden on households. In fact, rental affordability has improved in 38 out of the 50 largest U.S. metropolitan areas over the past year, with renters in cities like Denver, Austin, Miami, San Antonio, and Phoenix seeing the most significant benefits from improved conditions.
What is the current state of rental affordability in the U.S.?
Rental affordability is at its best level in four years, with a typical rental requiring 28.4% of the median household income nationally.
What factors are contributing to the increase in rental affordability?
Subdued rent growth, record-breaking concessions from landlords, and increased multifamily housing production have contributed to improved rental affordability.
Which regions are experiencing the most notable rent declines?
Falling apartment rents are concentrated in the Sun Belt and Mountain West regions, notably in cities like Austin, Denver, San Antonio, Phoenix, and Orlando.
How are landlords attracting renters in the current market?
Landlords are increasingly offering concessions such as free months of rent or complimentary parking, rather than lowering rents.
How much has single-family rent growth changed?
Single-family rents experienced a 3.2% year-over-year rise in September, marking the lowest annual growth since Zillow records began in 2016.
| Region | Year-over-Year Rent Change |
|---|---|
| Austin | -4.7% |
| Denver | -3.4% |
| San Antonio | -2.3% |
| Phoenix | -2.2% |
| Orlando | -0.8% |
| Chicago | 6% |
| San Francisco | 5.6% |
| New York | 5.3% |
| Providence, Rhode Island | 4.8% |
| Cleveland | 4.2% |
| Date | Event | Status |
|---|---|---|
| September 2023 | National annual rent growth recorded at 1.7% | Confirmed |
| 2024 | Significant multifamily units completed | Confirmed |
| Fall 2023 | Concessions on rentals peak | Expected |
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Additional Resources
- azcentral: Phoenix Affordable Homes
- Wikipedia: Affordable Housing
- Phoenix New Times: Arizona Housing Costs
- Google Search: Phoenix Housing Market
- AZ Big Media: Income Needed to Afford Rent in Phoenix
- Google Scholar: Affordable Housing Arizona
- AZ Capitol Times: Housing Solutions Require Partnerships
- Encyclopedia Britannica: Housing Affordability
- KTAR News: Dominium Affordable Housing Maricopa
- Google News: Affordable Housing Phoenix
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.